Morning News Call - India, June 11

Reuters Staff

7 Min Read

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FACTORS TO WATCH
9:00 am: National Investment & Infrastructure Fund CEO Sujoy Bose, Finance
Ministry Joint Secretary K.V. Pratap, Prime Minister Economic Advisory Council
Member Rathin Roy, Railway Board Executive Director (Finance/PPP) Manoj Dubey,
IDFC Bank MD & CEO Rajiv Lall and others at Finance Ministry-FICCI-RIS event in
Mumbai.
10:30 am: Society of Indian Automobile Manufacturers releases May sales and
production data in New Delhi.
12:00 pm: Railways and Coal Minister Piyush Goyal press conference on
four-year achievements of the ministries in New Delhi.
LIVECHAT - FX WEEK AHEAD
FX Buzz analyst Jeremy Boulton analyses G7 currencies at 3:30 pm IST. To
join the conversation, click on the link: here
INDIA TOP NEWS
• India mulls company to deal with banks stressed assets
India has set up a panel of experts to explore mechanisms for resolving the
burgeoning bad debts plaguing its financial sector, the country's interim
finance minister said on Friday.
• South African police raid Bank of Baroda in corruption investigation
An elite South Africa police unit raided offices of India's Bank of Baroda on
Friday and seized documents as part of an investigation into state corruption
under former president Jacob Zuma, a police spokesman said.
• Police arresting Indian smelter protesters based on evidence - state
minister
Indian police are only arresting people involved in protests against a copper
smelter owned by Vedanta Resources where there is videographed evidence of them
indulging in "anti-social" activities, a senior state minister told Reuters.
• Nirav Modi flees to UK, claiming political asylum -FT
Nirav Modi, the billionaire jeweller at the heart of a more than $2 billion
fraud case in India, has fled to the UK, where he is claiming political asylum,
the Financial Times reported on Sunday, citing Indian and British officials.
• India strikes river, rice deals with China as relations thaw
China and India on Saturday settled a dispute over the flood-prone Brahmaputra
river that flows from Tibet to Bangladesh in a sign of growing cooperation
between them.
GLOBAL TOP NEWS
• N.Korean, U.S. officials meet to narrow differences on eve of Trump-Kim
summit
U.S. and North Korean officials were in talks in Singapore on Monday in a
late bid to narrow differences before their leaders hold an unprecedented summit
meeting aimed at finding ways to end a nuclear stand-off on the Korean
peninsula.
• U.S.-Canada dispute escalates after tense G7; Trump renews criticism of
Trudeau
The United States and Canada swung sharply on Sunday toward a diplomatic and
trade crisis as top White House advisers lashed out at Canadian Prime Minister
Justin Trudeau a day after U.S. President Trump called him "very dishonest and
weak."
• Japan core machinery orders rebound, signal capex recovery intact
Japan's core machinery orders in April jumped the most since the start of
2016, reversing the prior month's decline and raising some hopes for durable
growth in capital expenditure seen as crucial for a recovery in the economy
after a contraction in the first quarter.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
• The SGX Nifty nearest-month futures were trading at 10,772, up 0.2 percent
from its previous close.
• The Indian rupee is expected to open little changed as investors await
policy decisions from three major central banks and a high profile summit
between the U.S. and North Korea during the week.
• Indian government bonds will likely edge lower in opening trade on the
announcement of a cash management bill auction, with absence of any major steps
from the finance ministry to support demand also to weigh on sentiment. Yield on
the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.93
percent-7.99 percent band today, a trader with a private bank said.
GLOBAL MARKETS
• U.S. stock indexes closed higher on Friday as investors shrugged off
concerns about global trade tensions but trading volume was relatively light
ahead of a busy week of central bank meetings.
• Asia stocks shook off initial modest losses and edged up ahead of a
U.S.-North Korea summit that might ease regional tensions, while investors also
started to focus on key central bank meetings later this week.
• The yen ticked higher while the Canadian dollar fell modestly on Monday,
after U.S. President Donald Trump threw the G7's efforts to show a united front
into disarray though market reaction was relatively muted.
• U.S. Treasury yields were marginally lower on Friday on light volume as
traders awaited the outcome of the Group of Seven summit, fretting about growing
trade tensions between the United States and its major allies and global
economic growth.
• Oil prices fell, dragged down as U.S. oil drilling activity rose to its
highest level since March, 2015, while increasing output in Russia also weighed
on the market.
• Gold prices edged higher in early Asian trade as the dollar softened ahead
of key central bank policy meetings and the U.S.-North Korea summit this week,
and as a weekend G7 summit fanned trade war fears.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 67.70/67.73 June 8 -$33.03 mln -$114.96 mln
10-yr bond yield 8.15 pct Month-to-date $166.31 mln -$217.17 mln
Year-to-date $410.96 mln -$4.44 bln
For additional data:
India govt bond market volumes
Stock market reports
Non-deliverable forwards data
Corporate debt stories [IN CORPD]
Local market closing/intraday levels [IN SNAPSHOT]
Monthly inflows [INFLOWS RTRS TABLE IN]
($1 = 67.5200 Indian rupees)
(Compiled by Benny Thomas in Bengaluru)